DA Fee Abstraction
Sunrise introduces "DA Fee Abstraction," a mechanism that allows developers to access blob spaces on Sunrise without paying direct fees. Instead, developers can provide liquidity to Sunrise liquidity pools to gain access to data availability services. This innovative approach reduces entry barriers for developers while maintaining the economic sustainability of the network.
Key Features
LEVEL 1: FOR APP DEVELOPERS
Liquidity-Based Access:
Developers provide liquidity to pools in the
x/liquiditypool
module.This contribution supports the network's overall liquidity and stability.
Multiple pool options allow flexibility for capital allocation.
Reward Mechanism (
$vRISE
):Liquidity providers receive
$vRISE
tokens as rewards proportional to their liquidity contribution.These tokens can be used to pay for data availability transactions without being burned.
$vRISE
rewards accumulate continuously while liquidity is provided.
Fee Segregation:
Data availability transactions can use
$vRISE
tokens for fee payment.Other transaction types still require
$RISE
tokens for fees.Clear separation between DA access and standard transaction costs.
Economic Sustainability:
Ensures Sunrise can provide data availability services without direct fee revenue.
Creates an alternative economic model that benefits both the network and developers.
Strengthens network TVL (Total Value Locked) as usage increases.
Core Functionality
Liquidity Provision and DA Access
When developers want to access data availability services:
They provide liquidity to selected pools in the
x/liquiditypool
module.They receive LP tokens representing their share of the pool.
They earn
$vRISE
tokens through liquidity mining based on their pool share.These
$vRISE
tokens can be used to pay for data availability transactions.The
$vRISE
fees are collected by the network but not burned, creating a sustainable cycle.
Technical Implementation
The DA Fee Abstraction mechanism is implemented through interaction between several Sunrise modules:
x/liquiditypool
: Manages liquidity positions and distributes$vRISE
rewardsx/fee
: Handles transaction fee processing, including the special treatment for$vRISE
feesx/da
: Processes data availability submissions and verifies fee paymentx/tokenconverter
: Allows conversion between$RISE
and$vRISE
tokens when needed
Workflow: DA Fee Abstraction Process
Below is a sequence diagram illustrating how the DA Fee Abstraction works:
Fee Calculation and Economics
The amount of $vRISE
required for a DA transaction depends on:
The size of the data being published
Current network congestion levels
Base fee parameters set by governance
The system is designed to maintain equilibrium between liquidity provision rewards and the cost of DA services, ensuring sustainability for both developers and the network.
Benefits
LEVEL 1: FOR APP DEVELOPERS
Lower Entry Barriers:
Developers can access data availability services without upfront token costs.
Promotes greater adoption of Sunrise's data availability layer.
Simplifies onboarding for new projects with limited initial capital.
Liquidity Enhancement:
Encourages developers to provide liquidity to the network.
Improves overall market depth and reduces slippage for all participants.
Creates deeper, more resilient liquidity pools as more developers join.
Sustainable Economics:
Creates a virtuous cycle where DA usage drives liquidity.
Liquidity providers are incentivized through
$vRISE
rewards.Network security increases as liquidity grows.
Flexibility for Developers:
Developers can choose which pools to provide liquidity to based on their token holdings.
DA costs are effectively offset by liquidity provision rewards.
Teams can optimize their capital efficiency while using Sunrise's DA.
Example Usage
LEVEL 1: FOR APP DEVELOPERS
Providing Liquidity and Using DA
Calculating Required Liquidity for DA Usage
Integration with Liquidity Incentives
The DA Fee Abstraction mechanism works in harmony with Sunrise's broader liquidity incentive system. Developers who provide liquidity for DA access also participate in the governance gauge voting system, allowing them to direct additional rewards to their preferred pools. This creates multiple streams of benefits for liquidity providers:
Direct
$vRISE
rewards for DA accessTrading fees from their liquidity position
Additional incentives from gauge-directed emissions
This holistic approach ensures that developers are properly incentivized to maintain their liquidity while using Sunrise's DA services.
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